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NAR and Realtor.com Agreement: Part 5, Individual Consumer FSBOs Remain Precluded From the Site

While this portion of the new agreement between NAR and Realtor.com is actually not new, it's important to analyze because of the reasons behind the overall strategy. NAR could potentially have agreed to let consumers post FSBOs on the website, as other portals have done.

The decision to preclude FSBOs certainly runs counter to the overall message of the agreement, which was to loosen up the reins, attract as many consumers as possible, and bank on increased traffic and visibility to overcome the loss of exclusivity. Still, this issue is significantly different from the others.

Allowing non-REALTOR listings to be displayed still allows REALTORS to sell those homes to their buyers. It also goes along with the co-brokerage/co-marketing attitude that most firms have adopted across the country, intermingling our listings on MLSs and portals nationwide. It's how we already do business, and doing so on Realtor.com is much like Remax.com displaying Coldwell Banker listings. It just makes sense.

Displaying individual consumer FSBOs, on the other hand, opens up a different can of worms. The consumer FSBO doesn't have the regulatory control of a commission structure because the consumer is not bound by an MLS agreement. Consumer FSBOs are often less accurate and timely than broker-listed properties because there are no repercussions for the consumer. REALTORS, on the other hand, incur the penalties that an MLS or brokerage doles out when their listings are out of line.

In short, the consumer FSBO creates a likelihood of more outdated listings, sold homes, and disputes over commissions. This is a huge problem for the other portals. Realtor.com's accuracy has always been a decided advantage, and keeping its listing broker-based will allow it to remain that way.

Of course there is always the most basic concern--REALTORS spending their own money to prop up a website that undercuts their ability to list properties. While that self-serving motive surely was a strong component of this decision, it appears there are also some solid strategic reasons to continue to preclude FSBOs from Realtor.com.

Overall, the decisions that came from the NAR board seem strategically correct based on our current situation. They were not decisions that were come to easily, and there is still plenty of dissension within the membership. That being said, the majority of the REALTOR members we elected to the board felt that this new agreement would help to bolster our brand. Let's give them our support and move forward.